Glossary · Reading the business
In short
An environmental term for the presence or likely presence of hazardous substances or petroleum products on a property, indicating potential contamination.
If a Phase I Environmental Site Assessment identifies an REC, it means there's a past or current condition that suggests contamination. This could be anything from old underground storage tanks to spills. An REC usually triggers a recommendation for a Phase II Environmental Site Assessment to determine the extent of the contamination and cleanup costs.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
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